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The Shipping News and Reviews

Victor DeFrancis, Attorney, Division of Advertising Practices
Consumers often first go to online review sites when they are thinking about buying a product or hiring a service provider. As a result, most businesses are concerned about managing their online reputation. But a recent FTC proposed settlement offers some lessons for businesses that seek to solicit online reviews with cash or other incentives. AmeriFreight is an automobile shipment broker – it arranges for freight carriers to ship its customers’...

FTC Milestone: A New Age Dawns for the FTC’s Competition Work

Kelly Signs, Bureau of Competition
As anyone of a certain age can attest, the 1970’s were all about change. Hairstyles and hemlines were obvious signs, but in the world of antitrust, change came in the form of applying competition standards to the “learned professions,” and new thinking about the role of competition in helping contain health care costs. Professionals as CompetitorsTwo Supreme Court decisions from the 1970’s fundamentally changed the application of competition...

POM v. FTC: A dozen quotable quotes from the D.C. Circuit opinion

Lesley Fair
POM Wonderful’s advertising claims were false and deceptive. That’s the conclusion of the United States Court of Appeals in upholding the FTC’s ruling. We think it’s a momentous victory for our two clients: American consumers and the cause of truth in the marketplace. You’ll want to read the entire opinion, of course, but here are twelve quotes from the D.C. Circuit’s decision that businesses, attorneys, and law enforcers will be citing for years...

Pink slip slip-up: First FTC cases challenging deceptive car title loans

Lesley Fair
She’s got a competition clutch with four on the floor And she purrs like a kitten ‘til the lake pipes roar. And if that ain’t enough to make you flip your lid, There's one more thing. I got the pink slip, Daddy. Back in the days of the Beach Boys’ “Little Deuce Coupe,” the only risk to a car title – the pink slip – was when hot rodders bet them on drag races.The FTC just announced its first two settlements with car title lenders that underscore...

Mess ipsa loquitor? Letting the facts speak for themselves

Lesley Fair
This post about the FTC’s law enforcement action against Craig Brittain will be a little different. No bullet points parsing the nuances of complaint allegations. No tips and takeaways for savvy marketers. No admonitions about industry best practices. Given that the “industry” in question is revenge porn, the facts pretty much speak for themselves. Mr. Brittain’s now-defunct site – isanyonedown.com – featured an assortment of explicit photos and...

TracFone’s limits on “unlimited” data lead to $40 million in consumer refunds

Lesley Fair
Certain advertising terms are bound to attract consumer attention: “free,” “no diet or exercise required” – and for people in the market for mobile data plans, “unlimited.” The FTC’s settlement with TracFone Wireless will return $40 million to consumers whose unlimited service was throttled or cut off. What can your company take from the case? TracFone is the country’s largest prepaid mobile phone service provider with approximately 25 million...

Spilling the beans: The anatomy of a diet craze

Lesley Fair
Some people call it the “Oz Effect” – the bump in consumer demand after a product or ingredient is featured on the The Dr. Oz Show. In a just-announced settlement, the FTC says defendants Lindsey Duncan, Pure Health LLC, and Genesis Today, Inc., took advantage of that phenomenon by deceptively touting the purported weight loss benefits of green coffee bean extract. The complaint recounts how defendant Duncan fueled a diet craze. The story has it...

Testing, testing: A review session on COPPA and schools

Lesley Fair
We often get questions about how the Children’s Online Privacy Protection Act applies in the school setting. The COPPA Rule gives parents control over what information “an operator of a Web site or online service” – yes, that includes apps – can collect from their kids under 13. Among other things, COPPA requires entities covered by the law to notify parents and get their approval before they collect, use, or disclose personal information from...

Unflattering resemblance

Geoffrey Green, Bureau of Competition
As discussed in a previous blog post, trade association members are subject to the same antitrust rules of the road as other companies or individuals who happen to be competitors. That means no price fixing, bid rigging, customer allocation or market division allowed, because these types of agreements are so plainly harmful that courts have condemned them as per se violations of the antitrust laws. Outside of the per se illegal category, other...

When silence isn't golden

Lesley Fair
Silence may be golden, but not for the parents of kids with speech disorders. Illinois-based NourishLife marketed two dietary supplements, Speak and Speak Smooth, advertised as the answer for kids with a broad range of speech disorders, including those associated with autism. But the FTC says the company’s claims were long on talk and short on scientific substantiation. According to the FTC, NourishLife and owner Mark Nottoli claimed their...